Origination, submission and lifecycle management.
Embank accepts entries from an originator, validates and screens them, assembles them into files against each processing window, and tracks each entry through settlement, returns and notifications of change.
The states an entry passes through
Each entry carries a state from the moment it is accepted until its return period has elapsed. Every transition is recorded with a timestamp, and the entry retains a reference to the file it was carried in and the settlement date assigned to it.
An entry that fails validation is rejected before it reaches a file. An entry that has settled may still be returned by the receiving institution within the applicable timeframe.
Settlement is not a terminal state. An entry remains subject to return until the timeframe for the applicable return reason code has elapsed.
Cutoffs, files and banking days
Entries are held in a queue and assembled into a file at the cutoff for the window they were assigned. The window an entry meets, together with the banking day calendar, determines its settlement date.
Saturdays, Sundays and federal holidays are not banking days. An entry submitted after the final cutoff on a Friday settles on the following Monday.
Confirming the receiving account
Account information is validated before an entry is originated. The method used depends on the account, the channel through which the authorization was obtained, and the requirements applicable to the SEC code.
| Method | Result | Timing | Notes |
|---|---|---|---|
| Instant | Validated account | Seconds | The receiver confirms the account through their financial institution. Coverage varies by institution. |
| Micro-deposit | Validated account | 1–2 banking days | Two small credits are originated and confirmed by the receiver. Used where instant coverage is unavailable. |
| Prenotification | Account confirmed | 3 banking days | A zero-dollar entry sent ahead of the first live entry. The RDFI may respond with a return or a notification of change. |
| Routing check | Format validated | Immediate | Checksum and directory validation of the routing number at submission. Does not confirm that the account exists. |
Consumer debits authorized through an internet or mobile channel are subject to an account validation requirement for the first entry to a given account under the Nacha Operating Rules.
Records retained against each mandate
An originator is required to obtain authorization in the form applicable to the SEC code and to produce evidence of it on request. Embank retains that evidence against the mandate the entries are originated under.
Authorization language
The exact text presented to the receiver at the time consent was given, retained as displayed.
Method and channel
Whether authorization was obtained in writing, through an internet or mobile channel, or orally by telephone.
Timestamp and identifiers
The date and time of consent, together with the identifiers captured at that moment.
Terms of the authorization
Amount or amount range, frequency and duration where the authorization covers recurring entries.
Revocation
Revocation recorded as an event against the mandate. Further entries under a revoked mandate are blocked at submission.
Export
The complete record exportable for a dispute, an audit, or a review by the sponsoring institution.
Returns, re-presentment and notifications of change
Return reason codes are classified on receipt. Whether an entry may be presented again, and on what schedule, follows from the category of the return rather than from a single retry setting.
| Category | Representative codes | Re-presentment | Action taken |
|---|---|---|---|
| Funding | R01, R09 | Permitted | Scheduled within the limits the Nacha Operating Rules establish for the number and timing of attempts. |
| Administrative | R02, R03, R04 | Not permitted | Further entries stop. The mandate is flagged and the account must be re-verified before a new entry is originated. |
| Unauthorized | R05, R07, R10, R29 | Not permitted | Entries under the mandate are blocked. The retained authorization record is attached for the originator to work the item. |
| Correction | C01–C07 | Not applicable | The corrected account or routing information is applied to the mandate before the next entry is originated. |
Entries returned for insufficient or uncollected funds may be presented again only within the limits the rules establish. Presenting an entry repeatedly after an administrative return produces further returns and further fees without a prospect of collection.
Limits, monitoring and exposure
A debit entry extends value before the return period has elapsed. Limits and monitoring are configured per originator and agreed at the outset of the relationship.
Return rate thresholds are established by the Nacha Operating Rules and are subject to revision. The current published thresholds govern.
Reconciliation
Each entry carries a timestamped state history and a reference to the file it was transmitted in. Settlement reporting associates the entries carried in a file with the settlement entry that resulted from it, so that a deposit can be resolved to the entries that produced it without manual matching.
Returns and notifications of change are recorded against the original entry and the mandate it was originated under, and remain available after the return period has elapsed.
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